3:26:29 PM | 7/8/2005
The steel industry in Vietnam is expected to produce about 5.8 million tonnes of steel this year, of which, Vietnam Steel Association (VSA) accounts for 5.2 million tons and other enterprises make up 0.6 million tonnes.
According to the association, some more steel projects with an additional capacity of 1.3 million tonnes per year will go into operation in 2005, including 400,000-ton project of the Southern Steel Co., and three 300,000-ton projects of Thai Nguyen Iron, Vinakansai and Pomina companies.
Besides, five other projects with the total capacity of 1.6 million tonnes per year are scheduled for completion in late 2005 namely Phu My, Cuu Long, Nam Loc, Hung Yen and Dinh Vu steel plants.
This year’s steel consumption demand is estimated at 6.2-6.5 million tonnes, up 10-14 per cent on-year, including 3.2 – 2.4 million tons of construction steel for the domestic market, a year-on-year increase of 15 per cent-20 per cent, and 3.4-3.55 million tonnes of steel ingot.
To achieve this year’s target of earning VND5,691 billion in 2005, increasing 36.13 per cent against 2004, VSC has set out many measures such as making use of its existing machines and equipment, preparing enough materials for production, improving distribution system and strengthening to examine the market to fight against speculation.
VSC in particular and the local steel industry in general and faced to many negative changes last year. However, the corporation still gained VND4,180 billion (US$266.2 million) of industrial production value, increasing 19.7 per cent against 2003, of which, steel ingot output was 657,197 tonnes, up 21 per cent on-year and VND218 billion (US$13.88 million) of profits. Its products accounted for more than 40 per cent in the domestic market.
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